Karachi — The Pakistan Stock Exchange (PSX) erased most of its early losses on Friday to finish nearly unchanged, reflecting cautious optimism despite ongoing worries over the upcoming federal budget.
The benchmark KSE-100 Index dipped more than 400 points during early trading, hitting a low of 118,742.59, before recovering to close at 119,102.67 — down just 50 points or 0.04%. The initial slide was driven by investor uncertainty about potential tax hikes and subsidy cuts expected under the IMF-guided fiscal plan for the 2025-26 financial year.
Selective buying in major blue-chip stocks helped stabilize the market, but overall sentiment remained guarded. Traders remain wary of possible capital gains tax increases and the removal of sector-specific tax exemptions, key components of the government’s revenue-raising efforts tied to the Extended Fund Facility (EFF) with the IMF.
Despite a recent rise in foreign exchange reserves and the arrival of a $1.023 billion IMF tranche, market participants are staying cautious ahead of clear budget details.
The partial rebound indicates bargain-hunting interest, but investors are largely in a wait-and-see stance. More sideways trading is expected until the budget announcements provide concrete direction.